In total, nearly €6bn is to be used for capital expenditure, with nearly half of this sum going on housing and transport.

Why is the Government setting up a ‘rainy day fund’?

One of the main reasons is that Fianna Fáil has demanded it under the ‘confidence and supply’ arrangement. There is a commitment to put aside €500m next year “to mitigate future external economic shocks”.

Fine Gael is leading a minority Government.

Has it run these Budget plans past Fianna Fáil?

Fianna Fáil leader Micheál Martin has said he is committed to ensuring a third Budget passes under the confidence and supply arrangement between the two parties.

Many TDs on both sides have privately expressed their doubts that this will be possible. But Mr Donohoe said he was determined to get the Budget through. Rows are inevitable but the talks won’t really get under way in earnest until mid-September.

Why is nobody talking about the ‘fiscal space’ anymore?

Thankfully the minister is trying to confine the phrase to the economic history books. He said yesterday it was no longer a relevant measure in the current economic environment.

Technically the Government could spend €900m more than planned by Mr Donohoe and still be within EU rules.

He said this would not be prudent as the State would have to borrow the money or raise it through taxes.